DISH DBS paper declines on financing reports; Altice France notes soften, up on week

By Cristal Cody

Tupelo, Miss., April 12 – DISH DBS Corp.’s bonds declined on Friday following news reports the company has received financing offers from private credit firms.

“The bonds are down,” a trader said.

The paper fell around 1/8 point to nearly 3 points in mostly light action over the session on around $17 million of volume reported by late afternoon.

Overall supply was light on Friday in the distressed space with Altice France Holding Restricted Group’s paper the most active on more than $30 million of trading spread across three tranches, a source said.

“It’s quiet,” a trader said. “Everything’s weaker.”

Altice’s 10½% senior notes due 2027 (Ca/CCC-) fell ¾ point on Friday but were ending the week nearly 3 points better.

Junk cable names were among the week’s “worst performers” and were driven by weakness in Altice, according to a BofA Securities note.

BofA projects 60% of all defaults to happen in the telecom, media and cable space.

Altice Group’s bonds were down more than 14 points from a month ago, BofA said.

The Fear Factor index jumped over 15% on Friday after a miss in earnings from JPMorgan Chase & Co. and Wells Fargo & Co.

The CBOE Volatility index was over 16% higher at 17.31.

The S&P 500 index closed 1.46% lower, with the iShares iBoxx High Yield Corporate Bond ETF down 4 cents, or 0.05%, to $76.37.

Treasury yields also gave back some of Wednesday’s heavy increases.

The 10-year Treasury yield closed down 7 basis points to 4.49%.

DISH trades lower

DISH’s paper declined around 1/8 point to nearly 3 points in mostly light action over the session totaling around $17 million, a source said.

DISH’s most active notes were the 11¾ notes due 2027 (Caa1/CCC-), which fell 1 1/8 points to 99 3/8 on $8 million of volume.

The 7¾% notes due 2026 (Caa3/CCC-) were off around 3 points at 62¼ bid on more than $4 million of paper traded on Friday.

The 11¾% notes were traded with a yield of 11.96%, while the 7¾% notes carried a 33.12% yield.

DISH DBS’ CDS spreads widened more than 100 basis points this week, while CDS spreads from DISH Network Corp. eased over 80 bps, according to a Moody’s Ratings report.

Parent EchoStar Corp. reported heavy fiscal 2023 losses in February following failed DISH bond exchange offers for four tranches of notes in January and two tranches of convertible bonds in February.

EchoStar previously said it is seeking funding to cover $1.98 billion of debt that matures in November.

The Englewood, Colo.-based satellite owner owns companies that include DISH, HughesNet, Boost Mobile and Sling TV.

Altice paper slips

Altice France Holding SA’s 10½% senior notes due 2027 (Ca/CCC-) gave back ¾ point to trade on Friday afternoon at 41¼ bid on $12 million of activity in one of the session’s most active names, a source said.

The notes have improved from where the issue was quoted in the same session a week ago at 38½ bid, 39½ offered.

Altice’s 6% senior notes due 2028 (Ca/CCC-) slipped ¼ point over the day to 32¼ bid on $13 million of volume.

The company’s 8 1/8% senior secured notes due 2027 (Caa1/CCC+) also were down 3/8 point at 78¾ bid on $8 million of trading.

The Paris-based telecommunications company’s bonds sank in March after Altice France lowered its guidance and highlighted potential haircuts for debt holders to reduce its leverage.

Distressed index edges up

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns improved to negative 0.28% on Thursday, compared to negative 0.43% on Wednesday.

One-day returns remained down from 0.54% on Tuesday and 0.58% on Monday.

Month-to-date total return losses widened to minus 0.85% from negative 0.57% midweek, negative 0.14% on Tuesday and minus 0.68% at the week’s start.

Year-to-date total returns declined to 1.26% on Thursday from 1.55% on Wednesday, 1.99% on Tuesday and 1.44% on Monday.

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